NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned an 'AA-' rating to Florida Power & Light
Company's (FPL) issue of $400 million 3.80% series first mortgage bonds
due Dec. 15, 2042. The Rating Outlook is Stable. FPL plans to use the
net proceeds from this offering to repay a portion of its outstanding
commercial paper borrowings, which stood at approximately $575.8 million
as of Dec. 14, 2012, and for other general corporate purposes.

FPL's ratings reflect predictable cash flows from regulated electric
operations, a slow but steady improvement in retail sales after a deep
economic downturn, return to a more orderly and constructive regulatory
environment, and strong balance sheet and liquidity profile. The ratings
take into account a period of high utility capex over 2013 - 2016 as FPL
modernizes its power generation fleet and uprates its nuclear capacity.

FPL was able to achieve a constructive outcome in its recently concluded
rate case. The utility was allowed a $350 million rate increase
effective January 2013 based on a mid-point Return on Equity (ROE) of
10.50% with a band of +/- 100 basis points and a 59.6% equity ratio.
Importantly, the order provided for a four-year generation base rate
adjustment (GBRA) mechanism, which allows FPL to raise rates when its
three modernization projects, Cape Canaveral, Riviera Beach and Port
Everglades achieve commercial operations in 2013, 2014 and 2016,
respectively, without having to file a rate case proceeding. This not
only provides timely recovery on major capital expenditures but
significantly reduces regulatory risk of frequent rate filings.

FPL's south Florida service territory still has above average
unemployment and a weak housing market. However, employment statistics
are modestly and consistently improving. FPL's inactive accounts and low
usage accounts are gradually waning. Fitch has assumed a modest customer
and usage growth in its financial forecasts. FPL recovers more than half
of the typical residential bill through clauses such as for fuel and
power purchased costs, environmental expenditures, nuclear uprates,
conservation and storm recovery.

FPL plans to spend approximately $8.3 billion in capex over 2013 - 2016.
A significant proportion of that will be spent on modernizing its aging
gas fleet. Recovery of these expenditures are now assured via the GBRA
mechanism and is expected to result in only modest price increases for
consumers due to anticipated fuel cost savings. FPL is also spending a
significant amount of capex on nuclear uprates that have been approved
by the Florida Public Service Commission (FPSC) and are being recovered
through the nuclear clause.

Fitch expects FPL to finance its capex needs using a mix of equity and
debt so as to maintain its regulatory capital structure. FPL's long-term
debt financing vehicles are primarily taxable secured first mortgage
bonds and tax-exempt revenue bonds. FPL has its own credit facilities
separate from the NEE group to provide liquidity back-up for commercial
paper funding and variable-rate tax-exempt revenue notes, as well as for
issuance of letters of credit. FPL has demonstrated excellent access to
the debt capital markets and commercial paper market, even during
periods of capital markets stress.

Fitch anticipates FPL's EBITDA based credit measures to improve 2013
onwards led by the base rate increase effective January 2013 and
forecasted stepped up revenue increases for the investments made in
modernization of the gas fleet. Fitch expects EBITDA coverage ratio to
be 8.0 - 8.5x and Debt to EBITDA ratio to be in the 2.4 - 2.5x range
towards the end of the three-year forecast period. The Funds Flow from
Operations (FFO) based credit measures remain robust over 2012-13 due to
bonus depreciation benefits and decline to more normalized levels
thereafter. Fitch forecasts FFO to Debt ratio to be in the 25 - 27%
range and FFO to interest coverage to approximate 6.5x toward the end of
the forecast period.

Triggers for Future Rating Actions: Positive or negative rating actions
for FPL look unlikely at this time. However, downward rating pressure
could result from:

Increasing Parent Risk Profile: If parent NEE increases its debt
leverage or changes its corporate strategy such that NEE's risk profile
materially worsens, it could adversely affect FPL's ratings in line with
Fitch's Parent and Subsidiary Rating Linkage Criteria.

Additional information is available at 'www.fitchratings.com'.
The ratings above were solicited by, or on behalf of, the issuer, and
therefore, Fitch has been compensated for the provision of the ratings.

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